Acquisitions are anything but business as usual. They usually come at the point when a business is strong and confident enough to either acquire a complementary product or service or clear the market of a competitor. They carry with them excitement but might also cause plenty of turbulence if they’re not thought through.
For [Jason Kwan](https://www.instagram.com/jasonkwans/), however, acquisitions are a part of everyday work. As the chairman and president of the Pearl West Group, Kwan is in charge of a portfolio he and his company grew without taking in outside capital. Now, Jason Kwan is sharing three things business owners should know about acquisitions.
The First Acquisition Is the Most Difficult
The first steps are always the most difficult. That’s the truth that can be applied to anything in life, and mergers and acquisitions aren’t an exception. In fact, it’s something people with experience made a point of letting Jason Kwan know. Their advice came with a silver lining, though: it gets better.
Jason Kwan’s experience only confirmed their advice. The first acquisition wasn’t as easy to accomplish and manage as the later ones were. However, it was an invaluable experience that pointed him and his team in the right direction for making sure they, as well as the businesses they acquire, have an easier time with every subsequent merger.
Knowing What to Look for in an Acquisition
One of the ways that Jason Kwan was able to make acquisitions easier was by developing templates they used to quickly size up the business. PWG can gauge the health and long-term sustainability of the business in about a week. They simply know what to look for in a business and have developed a methodology that lets them get to it quickly.
It doesn’t hurt that Jason Kwan has some previously acquired skills that can help him evaluate the business quicker. He also started a couple of businesses in the niche in which he’s making the acquisitions: e-commerce businesses that operate on Amazon. This gave him in-depth knowledge applicable when acquiring businesses and beyond.
Success Depends on the Post-Acquisition Process
Once the acquisition is completed, its long-term success will, to a large extent, depend on how well the business is integrated into the post-acquisition environment and how well it’s managed. Having a process in place that will support the new addition to the roster is key for its survival and well-being.
Jason Kwan has a couple of things going for him in this area. He has extensive experience with digital channels and marketing, which can easily be applied to the benefit of every new acquisition. He also has access to existing supply chains from all of his acquisitions, so he can make sure the quality is uniform, the prices are competitive, and the margins are high.
Every acquisition is an opportunity to learn something new. Jason Kwan uses each acquisition to adjust every step in his process, from gauging a business and communicating with its owners to making sure it thrives. That’s the best way to make sure that every acquisition is easier than the previous one.
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